Crime Reduction - Helping to Reduce Crime in Your Area

Value for Money? Cost analysis in crime reduction

Nacro Community safety practice briefing

This guide introduces community safety practitioners to cost analysis work. It covers:

• An introduction to commonly used terms and concepts.

• A discussion of the different ways in which cost analysis can be used in crime reduction.

• Examples from the field.

• Some ideas on using cost analysis in crime audits.

• Some ideas on using cost analysis in the development of crime and disorder reduction strategies.

Introduction

Cost analysis has been repeatedly identified as an important area for future development by partnerships.

The Audit Commission suggest that:

‘Cost benefit analysis is a useful way of persuading partners and outside investors to invest in prevention. Analysing issues on a smaller scale – focusing the measurement of costs on housing departments, hospitals or schools – can be more useful than broad statements of cost across large geographical areas.’

In summary, the advantages of cost analysis work are that:

• Information on the costs of crime, and the costs and benefits of different crime reduction options, will help ensure that scarce resources are allocated in the most effective way possible.

• Cost analysis will make decisions more transparent and promote a proper discussion of different crime reduction options within partnerships.

• An analysis of the costs of crime and crime reduction will help partnerships focus on the impact, rather than the volume, of crime.

• Cost analysis will help partners achieve Best Value and comply with Section 17 of the Crime and Disorder Act 1998.

• Cost analysis will provide an additional means of evaluating the success of different crime reduction initiatives.

Although cost analysis can seem a daunting subject, most partnerships have already considered cost analysis issues in some form or other. For instance:

• A better understanding of the value for money of different crime reduction initiatives is a central aim of the Home Office Crime Reduction Programme. All strands of that programme are being evaluated for their cost-effectiveness and the Home Office also plans to carry out a comparative cost-benefit analysis.

• Value for money will be a central element of Best Value reviews of community safety and should be considered in the course of Section 17 of the Crime and Disorder Act 1998 reviews.

Using cost analysis in crime reduction work

Broadly speaking, there are four ways in which cost analysis can be used in crime reduction work:

1. Identifying the costs of inputs to crime reduction work.

2. Identifying the cost of crime.

3. Cost-effectiveness analysis.

4. Cost-benefit analysis.

Contents

• Introduction: Why cost analysis?

• Using cost analysis in crime reduction work

• Using cost analysis in crime and disorder auditing

• Using cost analysis when developing crime reduction strategies

• Cost analysis in action

• Conclusion: The implications of cost analysis work

• Glossary

• Bibliography and further reading

Getting a copy

Value for Money? Cost analysis in crime reduction PDF 68Kb

Last update: 27/08/03